AIWalay Tools

Commission Calculator

Calculate commission earnings from sales and rate, add an optional base salary, and see total pay and your effective rate on sales.

About the Commission Calculator

This commission calculator turns a sales figure and a commission rate into your actual earnings. Enter the sales amount and rate, optionally add a base salary for the same period, and it shows the commission, your total pay and the effective rate — total earnings as a percentage of sales.

The core formula is simple — commission = sales × rate ÷ 100 — but the effective-rate view is what makes offers comparable: a 40,000-sales month at 5% commission with a 1,500 base pays 3,500 total, an effective 8.75% of sales. That lets you weigh a high-base/low-rate package against a low-base/high-rate one at your realistic sales volume.

Use it to check a payslip, forecast earnings at different sales targets, or model how a rate change in your comp plan flows into take-home pay. All calculations stay in your browser.

How to Use the Commission Calculator

  1. 1Enter the sales amount for the period.
  2. 2Enter your commission rate as a percentage.
  3. 3Optionally add your base salary for the same period.
  4. 4Read the commission, total earnings and effective rate on sales.

Frequently Asked Questions

How do I calculate commission? A worked example

Commission = sales × rate ÷ 100. On 40,000 of sales at a 5% rate, commission = 40,000 × 0.05 = 2,000. With a 1,500 base salary, total earnings are 3,500 for the period.

What is an effective commission rate?

Total pay divided by sales. In the example above, 3,500 ÷ 40,000 = 8.75% — higher than the 5% headline rate because the base salary is spread over the sales. It falls as sales rise, which is why comparing offers requires plugging in your expected volume.

How do I compare a high-base offer with a high-commission offer?

Run both through the calculator at the same realistic sales figure. At 40,000 sales, a 1,500 base + 5% pays 3,500, while a 500 base + 8% pays 3,700 — the commission-heavy plan wins. At 25,000 sales the totals flip: 2,750 vs 2,500. The break-even sales level is where they match.

What about tiered commission rates?

For tiers (e.g. 3% up to 20,000, then 6% above), calculate each band separately and add: on 40,000 that's 20,000 × 3% + 20,000 × 6% = 600 + 1,200 = 1,800. Run each tier through this calculator and sum the results.

Is commission calculated on revenue or profit?

Depends on your plan. Revenue-based plans use the sale price; margin-based plans use gross profit, rewarding profitable deals over discounted volume. Read your comp plan carefully — a 10% margin-based rate can pay far less than 5% of revenue.

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